The state of Penang is located in the Malaysia peninsular’s northwest coast. Penang is widely viewed as one of the most livable city states in Asia. Penang is steeped in tradition with a rich cultural expression through its many festivals and religious traditions. The state capital of George Town, boasts one of South east Asia’s largest collection of 19th century and early 20th century buildings.
Malaysia’s government is sponsoring plans to develop Mayasia’s northern region as well as properties around Penang. The “Northern Corridor Economic Region,” (“NCER”) plan sponsors development to generate growth and income levels through state of the art master planning.
Additional factors regarding the real estate in Penang are discussed below.
1. Experts expect Penang’s real property market to benefit from the NCER growth initiative. Potential investors should examine where their proposed investments are located in relation to the NCER plan.
2. The new leasehold land policy in Malaysia allows 30 year, 60 year or 99 year residential leasehold on land to be converted to freehold land on individual case review.
3. Batu Ferringhi, near the sea or in Tanjung Bungah are key locations for retirement or resort styled living in Malaysia.
4. In Malaysia, “apartment” and “condo” may mean the same. Be clear with what you mean.
5. Mortgage loans of sixty percent (60%) of the real estate purchase price are generally available to foreign investors subject to the property being valued at “RM 250,000” and more. The current lending rate is six point eight percent (6.8%) per annum and loans (mortgages) are available up to 20 years.
6. Banking in Malaysia is simple for foreign real estate investors. The investor’s local attorney can set up any banking required by the investor or for the transaction which can be conducted on line and in the investor’s language.
7. Real property development booms follow large hotel developments. This is especially true for the international hotel brands.
8. Condominiums in Panang are marketed between $66,000.00 USD and $250,000.00 USD. Standard bungalows are marketed between $66,000.00 USD and $225,000.00 USD, two storey level bungalows (5 to 7 bedrooms) are marketed between $396,000.00 to $1.3 million USD. Luxury villas are marketed on average at $925,000.00 and up.